Expedited payment order proceedings provide a faster, simpler court procedure than ordinary civil litigation for claims concerning a specified sum arising from private law. Substantive disputes are not decided and hearings are not held.

What are expedited payment order proceedings?

Speed and simplicity are the main features. In outline, the creditor submits a written statement to the court that the debtor has not fulfilled a financial obligation.

On receiving a proper application, the court sends the debtor a proposal for payment and sets a deadline for payment or a response, including an objection.

If the debtor neither pays nor responds or objects, the court issues an enforceable order that can be executed through a bailiff.

If the debtor objects, the expedited procedure ends. If the creditor requested this in the application, the matter is transferred to the county court to continue as ordinary civil proceedings.

The county court sets a deadline for submitting a proper claim with evidence and paying the additional state fee. The fee already paid for the expedited procedure is credited towards the ordinary proceedings fee.

The payment proposal is generally sent within a day or two. The response period described in the original article is generally 15 days from service, or 30 days if served abroad.

How large can the claim be?

The original article describes claims of up to €8,000, including ancillary claims such as interest and late-payment interest. Ancillary claims must not exceed the principal. For maintenance, it describes a monthly limit of €313.80, requires the debtor to be recorded as a parent on the child's birth record and excludes retrospective maintenance claims.

Advantages

  • Lower state fees: Fees are substantially lower than in ordinary proceedings.
  • A low evidential burden: Evidence need not be attached and a detailed legal justification is not required.
  • A simple application: A first application may seem complex, but repeat applications can generally be prepared within half an hour.
  • Speed: The payment proposal can usually be issued within a day or two.

Disadvantages

  • Delay: If the debtor objects, starting ordinary proceedings can be delayed by one or two months, depending on service and the court's handling of the transfer.
  • Easy to challenge: A debtor can object by simply stating that they disagree, causing the expedited procedure to end.
  • Potential additional loss: If the debtor objects and the creditor does not pursue an ordinary claim, the expedited state fee is lost.
  • Limited recovery of other costs: Legal advice costs are not reimbursed in the expedited procedure described here; recovery is limited to the state fee and €20 towards procedural expenses.

Alternatives

  • A demand letter: You can request preparation and delivery of a letter to the debtor through Magilex's product enquiry page.
  • Publishing a payment default: This can encourage payment where creditworthiness matters to the debtor. Defaults can be submitted through e-Krediidiinfo. The debtor receives notice that the default will be published unless they pay or dispute it within a stated period, giving a further opportunity to pay without harming their credit record.
  • Ordinary civil proceedings: The most complex and costly alternative, but also the most effective where there is a substantive dispute or a debtor is unlikely to pay voluntarily.

How do you apply?

Applications are submitted through e-toimik, the court portal for monitoring proceedings, receiving and submitting documents and viewing digital civil and administrative court files.

You can sign in with an ID card or Mobile-ID. The application must be digitally signed.

What is the state fee?

The fee stated in the original article is 3% of the claim, with a minimum of €65. No fee is required for maintenance claims.

For example, the article gives a fee of €65 for a €300 claim and €90 for a €3,000 claim.

The fee can be paid through a bank link in e-toimik or separately, with payment details added to the application. It is paid to the Ministry of Finance. Payment details can be downloaded from e-toimik once the application is ready.

Does the debtor reimburse the costs?

The debtor bears costs where the court orders payment, and where the applicant confirms in writing that the debt has been paid. Otherwise, costs fall on the applicant unless the law provides differently. If the case continues as ordinary proceedings, expedited procedure costs form part of those proceedings' costs.

In a payment order or a termination order following payment, the court determines the reimbursable state fee and, as described in the original article, awards €20 towards the applicant's procedural costs. Other expenses, including representation and service costs, are not reimbursed in this procedure.

Conclusion

The expedited procedure can be useful for regularly addressing overdue business receivables. A manager, lawyer or accountant can generally submit the application. Because legal advice costs are not recovered, in-house filing may be preferable; otherwise, allow for the additional legal cost.

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